The Life and Death of Direct File [pdf]

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A case study on the launch, success, and political shutdown of the IRS's Direct File tax service.

In 2024, the IRS launched Direct File, the first free government-run online tax filing service in U.S. history, built by an in-house team using USDS and private-sector methods. Over two filing seasons, 400,000 Americans filed at no cost, with 94% rating the experience excellent or above average. The service increased taxpayer trust, with 86% of users reporting higher trust in the IRS. Despite its success, DOGE shut down Direct File in 2025. The study documents leadership lessons from the project's rapid development and political demise.

What commenters are saying

Commenters split into two camps: those applauding Direct File's success as proof that government can build good digital services, and those arguing the government should not build such tools, preferring contracted private solutions. Several commenters noted the shutdown was political, not merit-based, citing lobbying by Intuit and H&R Block. A minority criticized the project's legal basis, saying Congress only authorized a study, not a working system. One commenter observed that most developed nations already offer similar free filing, and the U.S. resistance stems from Cold War anti-government ideology.